Today I am looking at the payout prospects of three FTSE 100 superstars.
HSBC Holdings
I reckon that the prospect of terrific revenues growth from its Chinese and Hong Kong operations bodes extremely well for HSBC Holdings (LSE: HSBA) (NYSE: HSBC.US) dividend prospects. While the bank should benefit over the long term from relatively low banking product penetration in Asian geographies, not to mention a recovering British economy, I believe that the companys robust balance sheet should also keep shareholder payouts ticking higher in the near future.
Despite the colossal financial burden of previous PPI-related misconduct and forex market rigging in pushing HSBCs earnings 18% lower in 2014, the business remained committed to its progressive payout policy last year and lifted the payout to 50 US cents per share from 49 cents in 2013.
And with earnings expected to take off again in the coming years expansion of 20% and 5% are pencilled in for 2015 and 2016 respectively HSBC is in good shape to keep the dividend ticking higher during this period. Indeed, the total payout is anticipated to register at 51.2 cents in 2015 and 53.9 cents in 2016, producing terrific yields of 5.9% and 6.2% correspondingly.
Aberdeen Asset Management
Dividends at Aberdeen Asset Management (LSE: ADN) have rolled consistently higher for many years due to a mostly unbroken record of bottom-line growth. And with earnings anticipated to rattle 5% higher in 2015 and a further 9% next year, Aberdeen Asset Management is in great shape to keep dividends ticking higher through this period in my opinion.
This view is shared by the City, with analysts expecting the business to raise the total payout from 18p per share last year to 19.9p this year and 22p in 2016. As a result the financial services play carries market-busting yields of 4.2% for 2015 and 4.6% for next year.
Aberdeen Asset Management announced this week that it plans to up its exposure to the rising economies of North Asia, as well as the highly-profitable US market. The company is already fixed on hoovering up hot targets and this week bought out the remaining stake in Aberdeen SVG Private Equity for 29m, and I expect further purchases to boost its global presence and consequently long-term investment appeal.
Legal & General Group
Reinforced by a period of sustained, double-digit earnings growth, life insurance play Legal & General (LSE: LGEN) has been able to keep dividends tearing along at a rate of knots. Combined with its position as an excellent cash generator operating cash leapt 6% in 2014 to 1.1bn I believe that investors can look forward to yet more appetising income flows.
Legal & General is predicted to deliver further earnings growth of 14% and 8% in 2015 and 2016 respectively, a promising omen for dividends during this period. Indeed, the London company is expected to lift last years 11.25p per share payout to 13.1p in 2015 and again to 14.5p next year.
Consequently, the business sports a gargantuan yield of 4.5% for this year, and which edges to 4.9% for 2016. And Legal & General is also using its vast resources to engage in an aggressive acquisition drive to boost its presence in lucrative emerging markets and exciting growth sectors, a promising sign for future earnings and dividend growth.
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Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended HSBC Holdings. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.